Faraday Future Reports Financial Results for Third Quarter 2022
Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) reported its third-quarter 2022 results, highlighting significant milestones. The company achieved manufacturing milestone #6 at its ieFactory in Hanford and improved FF 91 performance metrics, notably an EPA rating of 381 miles, surpassing initial estimates of 333 miles. The firm also secured a $600 million financing facility with an initial $52 million committed. Financial results revealed a net loss of $103 million, significantly down from $304 million year-over-year, marking a positive shift in operational expenditures.
- EPA rating of 381 miles for FF 91, up from 333 miles estimate.
- Reduced net loss of $103 million compared to $304 million in Q3 2021.
- Achieved manufacturing milestone #6 at ieFactory California.
- Total assets decreased to $541 million from $907 million in December 2021.
- Accumulated deficits increased to approximately $3.3 billion.
- Operating loss of $81 million during Q3 2022.
– Official Rating from
– FF 91 Performance Specifications Ahead of Targets –
– Milestone 6 Reached at ieFactory
– S-1/A Effective, Significant Funding Agreements Completed –
“The third quarter marked a turning point for our company, and we are seeing positive momentum across our vehicle program and in our funding program. I am pleased to announce the achievement of manufacturing milestone #6, the completion of construction and equipment installation in vehicle assembly areas of our ieFactory
KEY COMPANY HIGHLIGHTS DURING THIRD QUARTER 2022
Faraday Future noted several key organizational and program developments during the quarter, including:
-
Announced a new financing facility which contemplates total potential funding of as much as
in a senior secured convertible notes structure, with an initial$600 million of committed funds. FF later amended the facility agreement to allow it to demand the forced exercise of certain warrants in cash of up to$52 million , subject to certain conditions. Subsequently, an additional$20 million was committed under the facility on$60 million October 26, 2022 . -
Announced its sponsorship and attendance at the 2022 Pebble Beach Concours d ‘Elegance. FF’s flagship FF 91 Futurist was available for demo rides and made a special appearance on the Concept Lawn on
August 21, 2022 . -
Announced the FF 91 Futurist, the Ultimate Intelligent TechLuxury EV, was officially certified to have a robust rating of 381 miles of EV range from the
U.S. Environmental Protection Agency , a significant increase from the Company’s previous estimate of 333 miles. -
Announced an agreement relating to its governance dispute with FF Top, including changes in the Company’s board membership and size, and other changes. Mr.
Adam He and Mr.Chad Chen were appointed to the Board of Directors.
EVENTS SUBSEQUENT TO THIRD QUARTER 2022
Subsequent to
-
Appointed
Yun Han as Chief Accounting Officer and Interim Chief Financial Officer (“CFO”), effectiveOctober 25, 2022 .Ms. Han was most recently Senior Vice President and Chief Accounting Officer of Romeo Power, Inc., and spent over 13 years withPricewaterhouseCoopers LLP (“PwC”).Ms. Han replacedBecky Roof , who had served as Interim CFO untilOctober 12, 2022 . -
Appointed
Mazars USA LLP (“Mazars”) as the Company’s independent registered public accounting firm as of and for the year endingDecember 31, 2022 , effectiveOctober 28, 2022 .Mazars is an independent member firm ofMazars Group , an international audit, tax, and advisory organization operating in over 90 countries. -
Announced a Definitive Agreement for a new standby equity line of credit (“ELOC”) with an affiliate of
Yorkville Advisors Global, LP (“Yorkville”), with an initial commitment of which can be increased up to$200 million at the Company’s option.$350 million -
Announced 369 preorders as of
November 17, 2022 . Preorders are fully refundable, non-binding, paid deposits for the FF 91 Futurist Alliance Edition and/or the FF 91 Futurist vehicles available initially for sale to customers in theU.S. andChina . FF 91 Futurist Alliance Edition preorders require a deposit for customers in the$5,000 U.S. and aCNY 50,000 deposit for customers inChina . FF 91 Futurist preorders require a deposit for customers in the$1,500 U.S. and aCNY 20,000 deposit for customers inChina . -
Announced the
California Air Resources Board (“CARB”) has certified the FF 91 Futurist as a zero-emissions vehicle (“ZEV”). The ZEV program is part of CARB's Advanced Clean Cars package of coordinated standards that control smog-causing pollutants and greenhouse gas emissions of passenger vehicles inCalifornia .
RECENT FF 91 PERFORMANCE STATISTICS
Testing and certification of the FF 91 continues, with EPA range and CARB emission certification results recently received. Other official and non-official performance specifications were recently updated. While subject to further updates, the table below summarizes recent figures as compared to internal FF targets.
Car Performance: Latest Results |
|||
CATEGORY |
TEST |
TARGET |
STATUS |
Range |
|
333 miles |
381 miles |
Acceleration* |
0-60 mph |
2.53 seconds |
2.27 seconds |
Braking* |
60-0 braking distance |
37 meters |
34 meters |
Speed |
Top speed |
155 mph |
155 mph |
Charging* |
Peak DC charging power capacity |
200 kw |
239 kw |
* Preliminary results. |
RESULTS FOR THIRD QUARTER 2022
Faraday Future reported an operating loss of approximately
During the three months ended
Total assets on
|
|||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
$ |
48,062 |
|
|
$ |
79,757 |
|
|
$ |
260,221 |
|
|
$ |
94,506 |
|
Sales and marketing |
|
3,888 |
|
|
|
6,832 |
|
|
|
16,272 |
|
|
|
11,099 |
|
General and administrative |
|
28,655 |
|
|
|
36,725 |
|
|
|
89,173 |
|
|
|
64,148 |
|
Loss on disposal of property and equipment |
|
— |
|
|
|
62,342 |
|
|
|
1,407 |
|
|
|
62,987 |
|
Total operating expenses |
|
80,605 |
|
|
|
185,656 |
|
|
|
367,073 |
|
|
|
232,740 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
|
(80,605 |
) |
|
|
(185,656 |
) |
|
|
(367,073 |
) |
|
|
(232,740 |
) |
Change in fair value measurements |
|
(6,966 |
) |
|
|
(22,747 |
) |
|
|
(622 |
) |
|
|
(60,394 |
) |
Interest expense |
|
(663 |
) |
|
|
(296 |
) |
|
|
(5,537 |
) |
|
|
(26,550 |
) |
Related party interest expense |
|
(996 |
) |
|
|
(1,597 |
) |
|
|
(2,931 |
) |
|
|
(15,765 |
) |
Other (expense) income, net |
|
(6,457 |
) |
|
|
1,117 |
|
|
|
(14,307 |
) |
|
|
(718 |
) |
Loss on extinguishment or settlement of related party notes payable, notes payable and vendor payables in trust, net |
|
(7,690 |
) |
|
|
(94,727 |
) |
|
|
(7,690 |
) |
|
|
(96,036 |
) |
Loss before income taxes |
|
(103,377 |
) |
|
|
(303,906 |
) |
|
|
(398,160 |
) |
|
|
(432,203 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
(3 |
) |
Net loss |
$ |
(103,377 |
) |
|
$ |
(303,906 |
) |
|
$ |
(398,169 |
) |
|
$ |
(432,206 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share information: |
|
|
|
|
|
|
|
||||||||
Net loss per Common Stock – Class A and Class B – basic and diluted |
$ |
(0.31 |
) |
|
$ |
(1.06 |
) |
|
$ |
(1.15 |
) |
|
$ |
(2.12 |
) |
Weighted average Common shares outstanding – Class A and Class B – basic and diluted |
|
330,878,677 |
|
|
|
287,951,929 |
|
|
|
346,575,508 |
|
|
|
203,686,758 |
|
|
|
|
|
|
|
|
|
||||||||
Total comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(103,377 |
) |
|
$ |
(303,906 |
) |
|
$ |
(398,169 |
) |
|
$ |
(432,206 |
) |
Change in foreign currency translation adjustment |
|
9,864 |
|
|
|
189 |
|
|
|
13,548 |
|
|
|
(487 |
) |
Total comprehensive loss |
$ |
(93,513 |
) |
|
$ |
(303,717 |
) |
|
$ |
(384,621 |
) |
|
$ |
(432,693 |
) |
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands, except share and per share data) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash |
$ |
31,766 |
|
|
$ |
505,091 |
|
Restricted cash |
|
2,162 |
|
|
|
25,386 |
|
Deposits |
|
44,530 |
|
|
|
63,370 |
|
Other current assets |
|
23,759 |
|
|
|
13,410 |
|
Total current assets |
|
102,217 |
|
|
|
607,257 |
|
Property and equipment, net |
|
411,657 |
|
|
|
293,135 |
|
Right of use assets |
|
20,202 |
|
|
|
— |
|
Other non-current assets |
|
6,608 |
|
|
|
7,040 |
|
Total assets |
$ |
540,684 |
|
|
$ |
907,432 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
65,239 |
|
|
$ |
37,773 |
|
Accrued payroll and benefits |
|
31,124 |
|
|
|
21,752 |
|
Accrued expenses and other current liabilities |
|
46,104 |
|
|
|
68,760 |
|
Related party accrued interest |
|
12,760 |
|
|
|
11,231 |
|
Accrued interest |
|
541 |
|
|
|
8,263 |
|
Operating lease liabilities, current portion |
|
2,487 |
|
|
|
— |
|
Finance lease liabilities, current portion |
|
1,807 |
|
|
|
— |
|
Related party notes payable |
|
12,253 |
|
|
|
13,655 |
|
Notes payable, current portion |
|
5,008 |
|
|
|
132,372 |
|
Total current liabilities |
|
177,323 |
|
|
|
293,806 |
|
Operating lease liabilities, less current portion |
|
18,640 |
|
|
|
— |
|
Finance lease liabilities, less current portion |
|
6,917 |
|
|
|
7,570 |
|
Other liabilities, less current portion |
|
3,531 |
|
|
|
3,720 |
|
Notes payable, less current portion |
|
46,950 |
|
|
|
34,682 |
|
Total liabilities |
|
253,361 |
|
|
|
339,778 |
|
Commitments and contingencies (Note 11) |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Class A Common Stock, |
|
31 |
|
|
|
17 |
|
Class B Common Stock, |
|
6 |
|
|
|
— |
|
Additional paid-in capital |
|
3,603,368 |
|
|
|
3,482,226 |
|
Accumulated other comprehensive gain (loss) |
|
6,603 |
|
|
|
(6,945 |
) |
Accumulated deficit |
|
(3,322,685 |
) |
|
|
(2,907,644 |
) |
Total stockholders’ equity |
|
287,323 |
|
|
|
567,654 |
|
Total liabilities and stockholders’ equity |
$ |
540,684 |
|
|
$ |
907,432 |
|
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
|
||||||
|
Nine Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(398,169 |
) |
|
$ |
(432,206 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
||||
Depreciation and amortization expense |
|
15,323 |
|
|
|
4,268 |
|
Stock-based compensation |
|
9,793 |
|
|
|
8,521 |
|
Vesting of restricted stock awards for employee bonus |
|
— |
|
|
|
14,620 |
|
Loss on disposal of property and equipment |
|
1,407 |
|
|
|
62,987 |
|
Change in fair value measurement of related party notes payable and notes payable |
|
622 |
|
|
|
60,394 |
|
Loss (gain) on foreign exchange |
|
2,484 |
|
|
|
(1,823 |
) |
Loss on write-off of vendor deposits, net and (gain) on write-off of accounts payable |
|
2,992 |
|
|
|
(4,191 |
) |
Non-cash interest expense |
|
8,468 |
|
|
|
36,478 |
|
Loss on extinguishment or settlement of related party notes payable, notes payable and vendor payables in trust, net |
|
7,690 |
|
|
|
96,036 |
|
Gain on forgiveness of vendor payables in trust |
|
— |
|
|
|
(1,731 |
) |
Reserve for unrecoverable value added taxes |
|
— |
|
|
|
6,404 |
|
Other |
|
324 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Deposits |
|
13,364 |
|
|
|
(35,796 |
) |
Other current and non-current assets |
|
(16,011 |
) |
|
|
(18,446 |
) |
Accounts payable |
|
27,467 |
|
|
|
(40,434 |
) |
Accrued payroll and benefits |
|
9,372 |
|
|
|
(6,889 |
) |
Accrued expenses and other current liabilities |
|
(24,628 |
) |
|
|
12,763 |
|
Operating lease liabilities |
|
(2,886 |
) |
|
|
— |
|
Accrued interest expense |
|
(12,721 |
) |
|
|
— |
|
Transfers between vendor payables in trust and accounts payable |
|
— |
|
|
|
1,167 |
|
Net cash used in operating activities |
$ |
(355,109 |
) |
|
$ |
(237,878 |
) |
Cash flows from investing activities |
|
|
|
||||
Payments for property and equipment |
$ |
(112,099 |
) |
|
$ |
(37,264 |
) |
Net cash used in investing activities |
$ |
(112,099 |
) |
|
$ |
(37,264 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from issuance of Class A Common Stock in the Business Combination |
$ |
— |
|
|
$ |
229,583 |
|
Proceeds from issuance of Class A Common Stock pursuant to the PIPE Financing |
|
— |
|
|
|
761,400 |
|
Transaction costs paid in connection with the Business Combination |
|
— |
|
|
|
(23,148 |
) |
Transaction costs paid in connection with the PIPE Financing |
|
— |
|
|
|
(61,130 |
) |
Proceeds from related party notes payable |
|
— |
|
|
|
200 |
|
Proceeds from notes payable, net of original issuance discount |
|
40,050 |
|
|
|
172,031 |
|
Proceeds from exercise of warrants |
|
1,728 |
|
|
|
— |
|
Payments of notes payable |
|
(87,258 |
) |
|
|
— |
|
Payments of related party notes payable |
|
— |
|
|
|
(38,217 |
) |
Payments of notes payable, including liquidation premium |
|
— |
|
|
|
(48,210 |
) |
Payments of notes payable issuance costs |
|
(2,813 |
) |
|
|
(3,355 |
) |
Payments of vendor payables in trust |
|
— |
|
|
|
(27,722 |
) |
Payments of finance lease obligations |
|
(1,410 |
) |
|
|
(2,691 |
) |
Repurchase of common stock |
|
(767 |
) |
|
|
— |
|
Transfers between vendor payables in trust and accounts payable |
|
— |
|
|
|
(1,167 |
) |
Proceeds from exercise of stock options |
|
9,535 |
|
|
|
10,492 |
|
Payments of stock issuance costs |
|
— |
|
|
|
(1,071 |
) |
Net cash (used in) provided by financing activities |
$ |
(40,935 |
) |
|
$ |
966,995 |
|
Effect of exchange rate changes on cash and restricted cash |
|
11,594 |
|
|
|
(2,536 |
) |
Net (decrease) increase in cash and restricted cash |
$ |
(496,549 |
) |
|
$ |
689,317 |
|
Cash and restricted cash, beginning of period |
|
530,477 |
|
|
|
1,827 |
|
Cash and restricted cash, end of period |
$ |
33,928 |
|
|
$ |
691,144 |
|
Customers can preorder an FF 91 via the FF Intelligent App or through our website (English): https://www.ff.com/us/preorder/ or (Chinese): https://www.ff.com/cn/preorder/
Download the new FF Intelligent
ABOUT FARADAY FUTURE
Faraday Future is a class-defining luxury electric vehicle company. The Company has pioneered numerous innovations relating to its products, technology, business model, and user ecosystem since its inception in 2014. Faraday Future aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet, and new usership models. Faraday Future’s first flagship product is the FF 91 Futurist.
FOLLOW FARADAY FUTURE:
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https://www.instagram.com/faradayfuture/
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NO OFFER OR SOLICITATION
This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the Company’s ability to satisfy the conditions precedent and close on the various financings previously disclosed by the Company (including an effective registration statement for the resale of the shares to be issued pursuant to the Yorkville ELOC), the failure of any which could result in the Company seeking protection under the Bankruptcy Code; the ability of the Company to agree on definitive documents to effectuate the governance changes with FF Top; the Company’s ability to remain in compliance with its public filing requirements under the Securities Exchange Act of 1934, as amended, and the listing requirements of
View source version on businesswire.com: https://www.businesswire.com/news/home/20221121005864/en/
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: media@faradayfuture.com
Source:
FAQ
What were the key financial results for FFIE in Q3 2022?
What is the EPA range rating for the FF 91?
How much funding did FFIE secure recently?